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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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General mining & base metals

Metminco draws attention in London as it emerges from slumber

Dual-listed junior now focusing on Miraflores gold project in Colombia

With half of the small-cap mining world here in London for three big conferences this week there has been plenty of chatter about stocks ready to pop.

Of course we have our spies in the wine bars around the Business Design Centre, Islington (host to Mines & Money 2017) and the hostelries on the narrow streets running from Fenchurch Street (where the Mining 121 gathering is being held).

And one name is being mentioned more than most: Anglo-Aussie microcap Metminco Ltd (LON:MNC, ASX:MNC), which, judging from the share price chart, is showing signs of life after a protracted hibernation.

READ: Metminco's full attention switches to Colombia after Los Calatos sale

The sale of its 49% stake in Los Calatos copper project, Peru, for US$5mln appears to have precipitated a change in tack of the group.

It is now focused on the Miraflores gold project, in Colombia, which is host to a ‘proved and probable’ 457,000 ounces of the yellow metal along with 385,000 ounces of silver.

Feasibility study completed

Flicking through the latest corporate presentation reveals a feasibility has been completed on the asset with gold production set to begin in the first half of 2019.

The mine is expected to produce around 45,000 ounces of gold a year for the next nine-and-a-half years at an all-in sustaining cost of US$643 an ounce.

Capital investment required under US$72mln

The capital investment required is put at just under US$72mln – which is bargain in a world where projects can run into the hundreds of millions of dollars.

What you are also buying into with Metminco is significant exploration upside, targeting 10mln ounces of gold.

A small note here: Metminco is funded to the decision to mine stage.

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